Monitor
Find out about
the global
contracting activity
which took place in
Q2 2016

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2

Sector analysis

Brexit: what are the potential
implications for the UK
oil and gas industry?
The UKâ&#x20AC;&#x2122;s EU referendum took place on 23 June with an
overall majority voting for the UK to leave the EU. The
wider market impact was instant: share prices plummeted
across Europe, the poundâ&#x20AC;&#x2122;s value weakened considerably
against the dollar and the price of Brent dropped 5%. At
an already challenging time for companies working in the
oil and gas industry, will Brexit have an impact on the UK
industry? While I cannot give a definitive answer to this, I
will consider some of the possible impacts on the future of
oil and gas in the UK.

No impact on regulation.
Business as usual in the UK?

An exit from the EU will not impact the day to day
running of the UK Continental Shelf (UKCS). The UK has
responsibility for its upstream petroleum licensing and
regulation, including the decommissioning of offshore
installations and pipelines, as well as the enforcement
of environmental legislation. The tax regime that applies
to the profits derived from oil and gas production on the
UKCS is also under the control of the UK government.
For those EU directives that the UK has adopted in the
oil and gas sector a decision would have to be made
whether to continue to apply EU law or whether to
develop new domestic policies. Should the UK develop
its own regulatory framework, there is the potential that oil
and gas companies could find themselves subject to two
different regulatory regimes. As EU law relating to oil and
gas has in the main been embraced by the industry, it is
considered unlikely that the UK will move away from the
existing regulatory regime.

Cost of field developments
may increase and projects
could be delayed

A large part of any oil and gas companyâ&#x20AC;&#x2122;s spend is related
to the employment of people. At this stage it is unclear
what policies will be put in place regarding freedom of
movement. What needs to be considered is that the
operator and contractor community is multinational and
the free movement of people is an essential part of the UK
and global industry. Without free movement companies
could face an increase in bureaucracy and associated
costs when it comes to recruitment, at a time when the
industry needs to reduce operating costs.

Neil G

olding

What about the opportunities
to export?

As for the global markets, the UK would have to sign
several new bilateral trade agreements, as many of our
current trade deals are as part of the EU bloc. Some
commentators consider this a fantastic opportunity for the
UK supply chain in the long-term, having stated in the past
that we have not been competing on a level playing field
with the Italians, French and others in a number of markets.
The question therefore is can the UK and its companies be
more competitive outside of the EU and its legislation?

Local content regulation to be
set up in the UK?

Away from a single market and the legislation that restricts
favouring domestic companies, the UK could, if it wanted,
look to officially mandate a local content rule. In offshore wind
the industry is unofficially targeting 50% UK content on new
developments. Could we now see local content legislation
drawn-up? I consider this to be highly unlikely due in part
to the cost implications. In theory it would lead to a less
competitive market place which in turn could increase costs.

A second Scottish
independence referendum?

The majority of the Scottish electorate voted to remain in
the EU. Leaving could see the emergence of a second
referendum. During the first Scottish independence
referendum North Sea oil was discussed widely and
how the basin and the resources would be divided up. In
the event of a second referendum this will no doubt be
discussed again. Should this happen it could potentially
lead to companies delaying or at worse cancelling projects.
Oil companies are experienced in working within difficult
environments and have a history of working in countries
with a far more hostile and volatile political environment
than a United Kingdom outside the EU. Despite the
potential implications of Brexit, the UK oil and gas industry
has more significant concerns. The low price of oil and
gas, its ageing existing infrastructure, high operating
costs and declining hydrocarbon reserves will remain
the primary challenges for the UK oil and gas industry.
Neil Golding, Head of Oil and Gas
neil.golding@the-eic.com

Inside this issue...
The UK’s decision to leave the EU has created
global headlines and much speculation as to
what will happen next. This month’s sector
analysis page (opposite) considers some of
the potential implications for the UK oil and
gas industry.
Our latest Monitor report on page 6, which reviews major
contracting activity from April to June 2016 (quarter two),
shows that while activity levels are still relatively low there
were some key developments. For example, 20 UK wind
turbine supply contracts were awarded in quarter two compared
to 13 in the previous quarter. In terms of downstream EPC awards,
it was also encouraging to see Europe feature so strongly.
For this month’s one-to-one section we interviewed Amec Foster
Wheeler’s Garry Dryburgh (page 4). Having become president for
Middle East and Africa in Abu Dhabi just over a year ago, it seemed
an opportune time to catch up with him and to hear his advice on how
to expand into the Middle East market. We also took a behind-thescenes look at how the Amec Foster Wheeler merger was managed.
The EIC’s rollout of new Inside Energy sections continues in this issue
with our social media round up on page 15. We want to use every
opportunity to engage with members and associates and to share
useful information, so please follow us on Twitter (@TheEICEnergy).
Our LinkedIn account – Energy Industries Council (EIC) – has some
very useful industry updates and insights. Recent posts include an
article on Argentina’s massive shale gas reserves and reformed
energy sector, and another on how to get projects moving during this
testing period of low oil prices.

Contents
Sector analysis

2

Inside this issue...

3

It’s been a real pleasure to receive such positive feedback from
members on our refreshed monthly newsletter and so many offers to
contribute content. We’ve received lots of good ideas for additional
sections too, one of which is a Spotlight on Technology feature.

One-to-one 4
New members

10

With this in mind, I’d like to invite all member companies who have
recently produced innovative products or technology to contact me so
we can share your stories with other readers.

Member news

12

Please send me a photo of the product and a brief description (no
more than 300 words) explaining what it does, why it was developed
and how it benefits your clients and/or the industry.
I look forward to receiving your contributions and any other ideas you
may have for your newsletter.
Edward White
Editor and Communications Manager
edward.white@the-eic.com

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EIC Monitor

6

Social media round up 15
Forthcoming events

16

EIC training

19

Middle East news

20

Asia Pacific news

21

North America news

22

South America news

23

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Join the EIC LinkedIn Group

4

One-to-one

with Garry Dryburgh
President, Middle East and Africa, Amec Foster Wheeler
Amec Foster Wheeler is one of the world’s leading engineering, project
management and consultancy companies.
We caught up with Garry in Abu Dhabi to discuss the Amec Foster Wheeler
merge, the Middle East market and his company’s plans for the future.
Q

turn a good profit, so our
direction had to follow the
money. We also committed to
one culture throughout the new
organisation. Through surveys,
interviews and workshops
we developed new values,
behaviours and their launch
and embedding plans.

Prior to moving to Abu
Dhabi last year you led the
Amec team that integrated
Foster Wheeler into the
company. What were the
main challenges of this reorganisation and how did
you go about achieving this
integration so smoothly?

A

The main challenge was how
to successfully combine two
large, proud organisations,
with 40,000 people in 50+
countries and histories
spanning over a century.

We achieved this by treating
it as you would any large,
complex and strategically
imperative multi-stakeholder
programme. We began by
truly understanding our
current location and abilities,
then carefully determining
and agreeing the destination
before setting and persistently
navigating the optimum course
of travel.

We did several key things to
effectively plan and manage our
bold adventure – I’ll elaborate a
little using my three ‘R’s:

Ruthless prioritisation
We began by probing and
listening hard, on culture,
capabilities and ways of
working. We agreed clear
expectations on the deal
rationale, developing
straightforward integration
principles which ensured we
focused on critical issues.
We’re in business to add real
value and from these efforts

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Right people
It is people who win, deliver
and support successful
projects. It requires working
interdependently on key
priorities with energy, effort
and enthusiasm. We resolved
any potential ‘power’ issues
by getting the right senior
team working together early
as our Integration Steering
Committee, each member
actively sponsoring work
streams. We handpicked the
Integration Management team,
the Regional Champions and
the many work stream leaders.
Rhythm
A rewarding challenge in
any enterprise is getting it
into rhythm. This requires
a passionate vision for the
future which wins hearts and
minds and the determination to
design and then really drive the
selected business model into
life. Our drumbeat included:
planning and engaging
early, effective governance,
sponsorship from top down,
momentum in integration and
base businesses, making the
hard but critical decisions, and
investing to create a repeatable
integration model.

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Q

You came to Abu Dhabi in
August 2015, after a year here
what are your reflections on
the region and what advice
would you give companies
thinking about tapping into
this market?

A

My reflections are heavily
influenced by considerable travel
and direct engagement with our
customers, our people and other
key stakeholders. In the past few
months I’ve had the privilege
of spending time in Saudi
Arabia, Iraq, Kuwait, Oman,
Jordan and also across parts
of Africa including South Africa,
Zambia, Zimbabwe, Rwanda
and Namibia. As a result of
these travels I have reached the
following conclusions:

Firstly, it’s all about people as it
is people that win, support and
deliver great solutions

Secondly, in travel as in life,
it’s the connections that count.
Connections are stories waiting
to be told. Stories that make
sense on where we’ve been,
where we’re going and what
matters most.

Thirdly, the world needs
business leaders who are
passionate about more than
just business.

Put those three together, as we
do in Amec Foster Wheeler,
and there’s opportunity to
make a difference in any
market, whether that’s in the
Middle East, Africa or any other
continent.

One-to-one

My advice to anyone thinking
about tapping into the Middle
East market is quite simple.
Begin by understanding
what you’re offering, and
thinking about how you’ll
build local capability in a way
that differentiates you and
is sustainable. The various
markets in the region are
dynamic, one static model
most certainly will not do.
Think about which passionate
people are right to work and
live here. How are you going to
connect them, and with who?
I would recommend that you
begin by connecting with the
EIC Middle East office. I was
very fortunate that the EIC’s
Terry Willis was first to meet
me, and with open arms, upon
my arrival. My next visits were
to UKTI and the UK Embassy
in Abu Dhabi – all of which
took place in my first week.

Q

Since you became President
for Middle East and Africa,
Amec Foster Wheeler has
opened a number of new
offices including in Ghana
and Oman. Where do you
see future growth for the
company? And what are the
prerequisites to successfully
entering new markets?

Organically, I see most growth
as being on the back of doing
great work for our current
customers. Our most recent
wins in Iraq, Kuwait, Saudi
Arabia and Mozambique
are fabulous examples of
that. But it’s also about
making compelling offers to
new customers too. To be
successful you have to make
good connections with both.
The balance varies depending
upon opportunity and location.
For example, I made over 30
customer connections during
my travels in May and most of

A

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those were new connections.
It’s only through really engaging
that you can get a feel for
alignment of values, cultural
fit, ability to make a value-add
offer and then add these to your
assessment of political and
security risk, ROI, etc. Where’s
there’s risk there’s opportunity
and for opportunity to knock
you’ve got to build a door.
Q

Amec Foster Wheeler has
been a great supporter of
the EIC, sponsoring the
networking area at the EIC
Connect Middle East event
earlier this year and our
networking reception at last
year’s ADIPEC. Why do you
think events like EIC Connect
Middle East or ADIPEC are so
important?

For me, these are where
you can get best bang for
the buck. You can make so
many new connections in
such a short space of time in
a really transparent way. At
Amec Foster Wheeler we’re
all about doing the right thing,
delivering on promises and
developing full potential. Events
like these help us exhibit to
multiple stakeholders that our
meaningful life comes from
using these strengths in the
service of others.

A

My advice to anyone
thinking about tapping into
the Middle East market
is quite simple. Begin by
understanding what you’re
offering, and thinking
about how you’ll build local
capability in a way that
differentiates you and is
sustainable

Any EIC members who wish to
be profiled in this section please
contact Edward White, EIC Editor
and Communication Manager at:
edward.white@the-eic.com

In Q2 2016 (April – June) a total of 25 major contracts
(EPC, FEED and Subsea/SURF) were awarded across
23 upstream developments, falling 37% from 44 awards
in Q1 2016 (January – March), and decreasing 55%
from 56 contract awards in Q2 2015. A total of 8 EPC
contracts, 7 FEED contracts and 10 Subsea/SURF
contracts were awarded.

EPC activity

Malaysia and Norway were only awarded one EPC
contract apiece, a significant decrease in activity from Q1
2016 when they were awarded eight contracts between
them. Oman, however, was awarded two EPC contracts
in Q2 2016 in comparison to zero in Q1 2016. Both of the
contracts were for compressor facilities on two different
projects operated by Petroleum Development Oman.
L&T Hydrocarbon Engineering was awarded both of the
contracts for work on the Kauther Depletion Compression
project and Saih Nihayda Depletion Compression project.

FEED activity

Seven contracts awarded in Q2 2016 which was a
decrease of 30% from the 10 contracts awarded in Q1
2016. As with the previous quarter it was Norway which
led the contracting activity with a total of four contracts.
Statoil awarded all four of the Norwegian FEED contracts,
with the most significant being awarded to Aker Solution
for work on the Utgard tieback. The contract also has the
option for Aker to provide EPCI.

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Subsea/SURF

Norway also topped the Subsea/SURF contract awards in
Q2 2016. Statoil was the operator which awarded the two
Norwegian contracts. The first was to GE Oil & Gas for
the lucrative Johan Sverdrup development, where GE will
supply the Christmas trees for the project. The second
was for the Oseberg development where Technip won a
contract to supply 9km of umbilicals.
The US also had a successful quarter when compared
to Q1 2016. There were two contracts awarded, the first
was awarded to Proserv by Hess for the supply of subsea
equipment on the Conger offshore expansion. Kiewit
Offshore Services won the second contract to rebuild
tendons on the Big Foot Deepwater field.

In Q2 2016, a total of 14 major contracts (EPC, FEED
and Pre-FEED) were awarded across 12 midstream
developments, decreasing 39% from 23 awards in Q1
2016, and 62% from 37 contract awards in Q2 2015.
A total of 11 EPC contracts, 3 FEED and 0 Pre-FEED
contracts were awarded.

EPC activity

With 11 contracts awarded, Q2 2016 has seen a 42%
decrease in EPC contract activity from the previous
quarter. This decrease is largely concentrated in
Canada where there has been a decrease from three
contracts in Q1 2016 to zero contracts in Q2 2016. This
sudden drop in awards is due to a significant decrease
in LNG export developments.

EIC Monitor

The TAP consortia awarded two EPC contracts on the
pipeline. The first was to Saipem to supply 105km of
offshore pipeline across the Adriatic Sea between the
Albanian and southern Italian coast. The second contract
was to supply 110km of offshore pipeline which was
awarded to Salzgitter AG.

A total of 20 major contracts (EPC, FEED and PMC)
were awarded across 18 downstream developments,
decreasing 41% from 34 awards in Q1 2016, and
decreasing 43% from 35 contract awards in Q2 2015. A
total of 17 EPC contracts, 2 FEED contracts and 1 PMC
contract were awarded.

Only one EPC contract was awarded in Europe in
Q2 2016, as opposed to two in the previous quarter.
However, the award was a high value contract given
to Transportadora de Gas Natural de la Huastecahas
by the Comision Federal de Electricidad, on the Tula Villa de Reyes pipeline. The contract was worth around
US$400m and the pipeline is now under construction with
a completion date scheduled for the end of 2017.

EPC activity

FEED activity

FEED activity has significantly decreased in activity in
Q2 2016 with only three contracts having been awarded.
While contracting activity within LNG has decreased,
two of the three contracts were still for FSRU projects.
The first was a contract awarded to Moffatt & Nichol
International which has been selected as the Ownerâ&#x20AC;&#x2122;s
Engineer on the Talcahuano import terminal operated
by Inversiones GNL Talcahuano. The second of these
contracts was awarded to BMT Asia Pacific for work on
the Songon Gas-to-Power project on the Ivory Coast. In
the currently oversupplied market it is FSRU and gasto-power projects like these that are more likely to go
through to development, as opposed to the large LNG
export projects.

Pre-FEED activity

No major Pre-FEED contracts were awarded in Q1 2016.
This is indicative of the sector as a whole in the current
climate. The oversupply in the markets, and in particular,
the recent flood of LNG has left a number of project no
longer commercially viable to proceed to development.

Downstream

Another major EPC contract awarded in Saudi Arabia
was granted by Iran Entekhab Investment Development
Group. PIELDS Engineering Ltd was awarded an EPCF
(engineering, procurement, construction and finance)
contract for the construction of a 175,000tpa pentane
plant in Asalouyeh, Iran. The project is very important
as it will supply feedstock for five expanded polystyrene
plants in the country.
Europe also saw some considerable EPC activity in
the last quarter with three awards made. NIPIGas was
awarded the EPC contract on the Moscow Oil Refinery
Modernisation project for the commissioning of the
refineryâ&#x20AC;&#x2122;s Euro+ combined refining unit. The other two
awards were both made in Azerbaijan - CNPC being
awarded the EPC for the Garadagh OGPC project and Air
Liquide was awarded the EPC for the Heydar Aliyev Baku
Oil Refinery Modernisation project.

FEED activity

Only two FEED contracts were awarded in Q2 2016.
The more significant of these was made by Sonangol
to Engineers India Limited (EIL) for a FEED revalidation
on the Lobito refinery. As part of the deal, EIL will
also provide licensor selection services and a basic
design and engineering package review. The refinery is
expected to be operational in 2018.

Downstream: number of major contract awards
60
50
40

PMC activity

30
20
10
0

The majority of EPC activity in Q2 2016 has been in the
Middle East, with 7 of the 17 contracts being awarded
in Saudi Arabia (four awards), Iran (two awards) and
the United Arab Emirates (one award). A significant
award from this quarter was the EPC contract awarded
on the Hormoz oil refinery. Daewoo E&C signed a MoU
with Iranian Bahman Geno Co to build the refinery with
Hyundai E&C at the start of May. A letter of intent was
issued to the two contractors back in April regarding the
project, which is expected to be operational in 2020.

Q2

Q3

Q4

2015

EPC

FEED

Q1

2016

PMC

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Q2

There was one PMC contract awarded in Q2 2016. In
Sweden, Chevron Lummus Global was awarded the
PMC contract for the Lysekil refinery upgrade. Under the
agreement, CB&I will develop a detailed cost estimate
and execution plan for the engineering, procurement
and construction phase of the project, with an expected
completion date of 2017.

In Q2 2016, 37 major contracts were awarded across 32
thermal and nuclear projects globally compared to the 40
major contracts that were awarded across 37 projects in
the previous quarter.
Of the 36 contracts awarded in Q2, 17 were engineering
procurement and construction (EPC) contracts, 19 were
for the supply of original manufacturer equipment (OEM)
and 1 was a project management contract (PMC).
Most of this activity occurred in the North America region
where 11 of the contracts were awarded, however, this is
lower than what we have seen in previous quarters. The
US took nine of the contract awards signalling the stable
growth in investment in thermal generation there. Mexico
saw an EPC contract awarded to its Topolobampo II
NGCC power plant and in Canada progress was made
on the refurbishment of the Darlington A nuclear plant.
A total of four contracts were awarded in South America
notably three of these were to the expansion of the
Warnes, Entres Rios and Sur thermal power plants
located in Bolivia and owed by Empresa Nacional de
Electricidad. All three OEM supply contracts went to
Siemens. The other contract went to the Tucuman thermal
power plant project in Argentina.
In Asia six contracts were awarded. Three of these were
in Indonesia where the PLTU 3 Banten Lontar coal-fired
power plant expansion continues to make progress (two
contracts) and the PLTG Cengkareng gas-fired plant
was awarded a contract. The remaining contracts were
awarded at China’s Tianwan nuclear power plant phase 2
and 3 project (unit 3-6), Taiwan’s Taichung thermal power
plant refurbishment (units 1-4) and Vietnam’s Vinh Tan
thermo power complex (Vinh Tan 4).
Meanwhile, in the Indian Subcontinent five contracts were
awarded. This is a drop in activity when compared to the
previous quarter when eight contracts were awarded in
the region.
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Looking to the Middle East there is steady growth in
conventional and thermal generation projects as five
contracts were awarded there, compared to four in the
previous quarter. The contracts that were awarded went
to projects located in Israel (two), Saudi Arabia (two) and
Oman (one).
Siemens received an order to construct two industrial
combined cycle natural gas-fired power plants with a
total capacity of 140MW in Israel. The project is Siemens’
first of its kind from a Middle Eastern country and will
involve construction of the Alon Tavor and Ramat Gabriel
natural gas-fired power plants. Siemens will manage their
turnkey construction and deliver a SST-300 industrial
steam turbine, a SGT-800 industrial gas turbine, and
the SPPA-T3000 control system for each project. With
an electrical capacity of 70MW each, the two industrial
plants are expected to be commissioned in mid-2018.
Siemens’ turbines will be manufactured in Brno, the
Czech Republic, and Finspong, Sweden. Nearly 40% of
the total power generation capacity in Israel is produced
using Siemens technology.
In Africa three contracts were awarded. Of these, two
went to Finnish contractor Wärtsilä for a projects in
Mauritius and Senegal respectively. Economic growth
and a developing tourism industry have resulted in an
increase in energy consumption in Mauritius. In Africa,
Wärtsilä’s total installed base is 6,500MW spread over 46
countries, confirming the company as a well-established
player in the market.
In the UK and Europe, the nuclear industry dominated
activity in Q2. In the UK, the Horizon nuclear new build
project announced its delivery team. A joint venture (JV)
named Menter Newydd, comprised of Bechtel, JGC
Corporation and Hitachi, was confirmed as the project’s
main EPC contractor for the £10bn Wylfa Newydd nuclear
power plant in Anglesey, Wales. The JV will now begin
to develop relationships with sub-contractors, with the
partnership managed via a joint programme management
office in Gloucester.
At the ITER nuclear fusion plant in Cadarache, France, a
PMC contract was awarded to the MOMENTUM JV. Led
by Amec Foster Wheeler in partnership with Assystem
and KEPCO, the JV will act as construction managementas-agent contractor for the project. The 10-year contract
is estimated to be worth €174m, with a three-year
extension option.
In Russia, contractor Atommash obtained an EPC
contract for the Kursk 2 nuclear power plant project. The
company will supply the reactor vessel for unit 1, which
will see a VVER-1200 reactor constructed. Replacement
units are being built for units which are being retired at
the original Kursk nuclear power plant. Four units are
to be constructed at Kursk 2, each with a capacity of
1,200MW. Commissioning of the first two units will be
synchronised with the shutdown of operating power units.

The second quarter of the year saw 20 wind turbine
supply contracts awarded to projects in the UK. Three
of the contracts were for offshore wind projects, with the
remaining 17 awarded to onshore wind projects.
Of note within the offshore wind contracts is the Beatrice
project which will consist of 84 Siemens 7MW turbines.
SSE holds a 40% stake in the project, while Copenhagen
Infrastructure Partners and China’s SDIC Power hold a
35% and 25% stake respectively. The project achieved
financial close in May 2016.
UK wind turbine supply contracts
25
20

The third contract of the quarter went to MHI Vestas
Offshore Wind for the supply of five 8.3MW turbines to
EDF Energy Renewables’ 41.5MW Blyth offshore wind
demonstration project, situated approximately 6km
off the coast of Blyth. Turbine installation is set to take
place in 2017.
Moving onto onshore wind projects, the second quarter
was particularly successful for turbine supplier Senvion
which was awarded eight wind turbine supply contracts
in the UK. Four of the contracts were awarded for
projects located in England, while four contracts were
for projects located in Scotland. Senvion will also supply
turbines to the Tormywheel project in West Lothian. After
winning the contract in May 2016, Senvion will deliver 15
MM92 2.05MW turbines in November 2016.
Nordex were awarded three contracts in the UK, two of
which are for projects in Northern Ireland. Vestas, GE
and Enercon GmbH were each awarded two contracts
respectively.

15
10
5
0

Q2
England

Q3

2015

Northern Ireland

Q4
Scotland

Q1

2016

UK Offshore

Q2

Wales

Siemens were also confirmed as the wind turbine supplier
for the East Anglia 1 project. The project developer is
ScottishPower Renewables, a subsidiary of Iberdrola SA.
The 714MW offshore wind farm will be the largest project in
terms of capacity for which Siemens has supplied turbines.
The turbines will be installed on jacket foundations and
the blades will be produced at Siemens’ Green Port Hull
facility. Great Yarmouth has been selected as the preassembly base. Siemens will also be responsible for
servicing the project for an initial period of five years.
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Data is sourced from the world leading EICDataStream
online project tracking database, which tracks projects
proposed or under development in the global energy
industry. For more information please visit:
www.the-eic.com/EICDataStream
EIC Monitor is published on a quarterly basis.

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signage, designed to enhance
safety and reduce operational
costs throughout project lifespans.
Core business Aquasign® is a
unique anti-fouling marking system,
providing highly-visible identification,
positional and orientation markings
for all types of subsea assets.
Aquasign® is a silicone based
marker system that mimics fish
skin, using a controlled nontoxic oil release system and
hydrophobic surface to prevent
bio-fouling at the lowest level.
Aquasign’s unique technology
is the only anti-fouling system
guaranteed for a minimum of 30
years and has been extensively
third party qualified for subsea use.
The company also boasts an
exclusive in-house manufacturing
facility used to produce all
equipment marking solutions.
Capabilities include CNC milling,
waterjet cutting, rotary engrave,
chemical etch and screen printing
which are used to produce a
wide variety of signage such
as aquaplates, certification
nameplates, safety signs and labels.
Get in touch Share your news and views...

Compliance to the international
standards such as IEC 61508
and IEC 61511 are imperative
to meeting the functional safety
requirements for many process
applications and have formed
part of the quality management
systems of many companies.
Provision of functional safety
services in line with the phases
and activities detailed in the
safety life-cycle is an area in
which the consultants are able to
demonstrate extensive experience
and expertise.

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

The company focuses on providing
clients with highly qualified,
screened candidates for both
domestic and international positions
in a timely manner. Straightforward,
honest, confidential searches
protect candidates and provide
direct hire, consulting or contract
personnel to clients. Many years
of experience and knowledge of
people in each industry allows the
company to match candidates with
suitable positions.
The company aims to be the
agency of choice for clients and
candidates alike. The relationships
it builds are based on top quality
recruitment and excellent service.
Staff of highly experienced
professionals make Global
Edge Consultants one of the
fastest-growing recruitment firms
worldwide.

New EIC members

NEW GLOBAL MEMBER

NEW GLOBAL MEMBER

NEW PRIMARY MEMBER

GMA Garnet Group

JLT Specialty Ltd

Proserv

PO Box 9
Middlewich
Cheshire
CW10 9FD

The St Botolph Building
138 Houndsditch
London
EC3A 7AW

Proserv House
Prospect Road
Westhill
Aberdeenshire AB32 6FJ

The Nominated Representative is
Mr John Halewood,
Business Development Manager.

GMA Garnet Group (GMA) has
been leading the garnet abrasive
market globally for more than
30 years. GMA not only mines,
processes and distributes garnet
for the surface preparation and
waterjet cutting industries, but also
leads the way in garnet recycling
and disposal.

JLT Specialty Limited provides
corporate insurance broking,
risk management and claims
consulting services in sectors
where the company can make the
greatest difference.

Proserv is an international energy
services company specialising
in the provision of life-of-field
solutions, operating on 25 sites
in 11 countries with 50 years
experience in the energy industry.

JLT Specialty has a dedicated
energy team of over 80 offering
a wealth of expertise and a
proven track record in dealing
with complex power and energyrelated projects. Using its insight,
intelligence and imagination the
team provides expert advice and
robust – often unique – solutions.

Proserv is focused on providing
cost efficient solutions and
services through an expert
response, to increase production
and reliability across the entire
oilfield. Proserv is continually
striving to develop ingeniously
simple and fit-for-purpose
technology solutions.

GMA operates a dedicated and
professional global distribution
network that is well established
to provide professional services,
solutions and technical support in
the industry for over 30 years.
GMA Garnet™ natural abrasives
are processed to highest quality
standards in respect of mineral
purity and meet the stringent
requirements of ISO 11126-10:2000
for chloride and free silica content.

The energy team offers both retail
and wholesale energy resources,
providing global insurance advice
and placement services directly to
clients and broker partners.

Over the years, the trusted quality
and proven performance of GMA
Garnet™ has garnered industry
confidence as the preferred
abrasive in various industries
including oil and gas, aerospace
manufacturing, defence,
shipbuilding and maintenance and
steel fabrication.

Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Follow @TheEICEnergy

Join the EIC LinkedIn Group

11

12

Member news
ABLE Instruments
signs distribution
deal with MSA
ABLE Instruments & Controls Ltd has
signed a distributor agreement with MSA
– The Safety Company, which allows it to
now offer an unrivalled range of gas and
flame detectors.
The strategic alignment of ABLE’s
application expertise with MSA’s high
quality products for both portable and
fixed detection will ensure its customers
are offered the right solution to their
safety requirements.
Commenting on the agreement, Richard
Smith, MSA’s Regional Manager Northern
and Eastern Europe said, ‘MSA has
been protecting lives for over 100 years
now. Combining that with ABLE’s ability
to provide a resolution, whatever the
problem, we should see a great deal of
success come from this relationship. We
consider ourselves fortunate to be able to
join forces with ABLE Instruments.’

i

For more
information:
www.able.co.uk

Alco Valves Group
invests in new
production and
technology centre

High performance valve manufacturer
Alco Valves Group is investing in a
new state-of-the-art 68,000 square feet
production and technology centre in
Brighouse, West Yorkshire.
Alco’s Managing Director Sam Crossley
explained: ‘This new facility brings all
the manufacturing together in a single
location allowing for efficient workflow
and the elimination of duplicated tasks.’
Redevelopment of the new premises has
already begun and once complete the
new centre will bring new and exciting
job opportunities to the local area.

i

For more
information:
www.alco-valves.com

Atmos International
tackling pipeline
product theft in
Latin America

Functional Safety Consultancy Ltd
(FSCL) has signed a partnership
agreement covering the Middle
East region with ATME Group, a
leading consulting company and
solutions provider for process
engineering, refining supply chain,
and energy optimisation.
Commenting on the agreement
ATME Group CEO Edmond
Chammas said, ‘ATME has a
strong engineering group based in
the Middle East, which combined
with the specialist knowledge
and experience in all aspects of
functional safety that FSCL has,
creates a strong and cost effective
offering to all the potential customers
in the region.’

Atmos International’s Latin American
Theft Net division, based in the Atmos
Costa Rica office in San Jose, will bring
welcome relief to pipeline operators in
Latin America under attack from hightech thieves using modern technology to
steal large quantities of valuable material
from hazardous product pipelines.

Peter Hall, Managing Director of
FSCL said, ‘It’s important to be able
to offer our consultancy services
from a local perspective and ATME’s
engineering background and
offices located in most Middle East
countries makes it an ideal partner
for FSCL.’

FSCL provides functional safety
consultancy services in accordance
with international standards IEC
61508 and IEC 61511, and is
experienced in working with end
users, engineering procurement
and construction companies and
system integrators.

By using a combination of hardware,
software, and skilled engineering
analysis this unique service has already
been deployed on virtually every refined
product pipeline network in the UK, and
is now expanding into Latin America.

i

The new production and technology
centre will create job opportunities

Mussa Mahomed, Nylacast Group
CEO said, ‘We are delighted to be
ranked in The Sunday Times HSBC
International Track 200. We currently
export over 70% of our UK engineered
and manufactured solutions to over 43
countries and are aiming to increase
our exports even more.’

The Ben Rinnes jack-up drilling unit

KCA Deutag sells
Ben Rinnes jack-up
drilling unit
Global drilling and engineering contractor
KCA Deutag has sold its jack-up drilling
unit, the Ben Rinnes, to an integrated
energy and services company for an
undisclosed sum.
Built in Clydebank, Scotland in 1973 and
acquired by KCA Deutag in 2005, the
Ben Rinnes was under contract offshore
Angola until February of this year.
Norrie McKay, KCA Deutag CEO said,
‘While the sale of the Ben Rinnes is an
important milestone for KCA Deutag as
it is our last asset in our mobile offshore
drilling fleet, we continue to maintain the
competence and experience required to
support offshore drilling unit operations.
This expertise is currently supporting the
construction and start-up of two Category
J jack-up rigs which will commence
operations on the Norwegian Continental
Shelf next year.’

i

For more
information:
www.kcadeutag.com

Sign up for the EICOnline newsletter

Nylacast ranked
as one of Britain’s
fastest growing
international sales
stars

The seventh annual Sunday Times
HSBC International Track 200
league table placed Nylacast, a
leading manufacturer of engineering
plastics, at 150 in its list of midmarket private companies with the
fastest-growing international sales.
Other companies in the Track 200
league table included travel search
engine Skyscanner and high street
coffee chain Pret A Manger.
Employing 410 members of staff
worldwide, Nylacast’s international
sales hit £26.7m in 2015. Operating
within key industries, the engineering
firm works closely with manufacturers
to develop performance and efficiency
enhancing solutions for household
names including CAT, JCB, BP,
Shell and GSK to name a few.
Nylacast also provides award winning
steering components for vehicle
manufacturers, helping to steer over
60 million vehicles worldwide.

Visit www.the-eic.com/Forms/NewsletterSignup

The Sunday Times HSBC
International Track 200 is compiled
by Oxford based research company
Fast Track, and is sponsored by
HSBC. Amanda Murphey, UK Head
of Corporate Banking at HSBC,
said, ‘The Sunday Times HSBC
International Track 200 is a great
reflection of the value of building
connections overseas. The world
is getting smaller and for ambitious
businesses, the opportunities to
source goods and services and to
grow organically via international
trade, digitally or on the ground, are
easier than ever.’

The Rotork ELB is a robust, selfcontained instrument that combines
pipeline pressure monitoring with
intelligent valve control. The ELB
can also collect detailed operational
data for optimising performance and
enhancing pipeline safety.
The ELB continuously monitors
upstream and downstream pipeline
pressure dynamics to provide early
detection of pipeline breaks and
initiate automatic valve actuator
movement to an emergency position,
based on user-defined parameters.

Follow @TheEICEnergy

Join the EIC LinkedIn Group

13

14

Member news

Tekmar products
successful at
Underwater Centre
trial

The Electronic Line Break (on the left) attached to a Rotork gas-over-oil pipeline actuator

Valve actuator control – selectable
as fail close, fail open or stay put – is
based on rate-of-drop (RoD) and
rate-of-rise (RoR) as well as high
and low pressure limits. A remote
process shut down (PSD) input with
the option to override all functions
is also available to drive the valve to
the fail position.
The ELB also provides an array
of programmable alarm and alert
indications and has an extensive
range of features that can be
configured to meet end users’
specific requirements.

i

For more
information:
www.rotork.com

Sonardyne
SensorView
reduces nonproductive rig time
at Ichthys gas field

SensorView software supplied
by subsea technology company
Sonardyne, which enables acoustic
data to be streamed in real time
from subsea structures as they are
installed, has helped to reduce
non-production time for independent
oil and gas producer, INPEX, and
its survey contractor, Neptune
Geomatics, during construction
of the Ichthys gas field, offshore
Western Australia.

The SensorView software allowed
data gathered by an acoustic
transponder mounted on tubing
head spools (THS), to be
transmitted at high speed to rig
personnel monitoring the installation
operations. The parameters
measured by the transponder’s
on-board sensors included
heading, depth, sound velocity and
inclination, and meant that delays
previously incurred while aligning
each THS to drilling templates, could
be substantially reduced.
Located 220km offshore, Ichthys
represents the largest discovery of
hydrocarbon liquids in Australia in
over 40 years. It covers an area of
around 800 square kilometres in water
averaging depths of around 250
metres and is estimated to contain
more than 12 trillion cubic feet of gas
and 500 million barrels of condensate.
Pat Fournier, Operations Manager
for Neptune’s Geomatics service
line said, ‘During Neptune’s recent
Ichthys drilling and completions
campaign, SensorView delivered
us THS heading update rates of
approximately one every three
seconds. This was sufficient for our
surveyors to fully understand the
dynamic motion of the structures
and thereby reduce the time needed
to land them in the correct location.’

i

For more
information:
www.sonardyne.com

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Tekmar Energy, which supplies cable
protection systems (CPS) to the offshore
windfarm industry, has successfully
carried out a full-scale demonstration of
its products at the Underwater Centre
– a purpose-built subsea training and
trials facility on the shore of Loch Linnhe
in Scotland.
The objective of the demonstration
was to prove the ability to rapidly and
reliably remove a CPS without the need
for divers. This is key safety issue as
offshore windfarm projects are being
installed in increasingly deeper waters
where diving becomes more dangerous
and costly.
With numerous offshore wind industry
leaders in attendance – including
DONG Energy, VBMS, Jan de Nul and
CWIND – Tekmar and the Underwater
Centre carried out the installation
and removal of a CPS from mock-up
offshore foundations.
Cable protection systems are designed
to be maintenance free for the full
service life of the windfarm. However,
for decommissioning purposes and in
order to reduce risk within the industry
it is important that any equipment that is
installed subsea has a proven and robust
method of removal.
The demonstrations were carried out over
a two day period. On the first day the
removal operation was performed on a
mock-up j-tubeless monopile foundation.
The second day was reserved to carry
out the same operation on a mockup j-tube. Both demonstrations were
considered successful with operations
being completed considerably quicker
than expected.

i

For more
information:
www.tekmar.co.uk

New
EIC members
Social
media
Member
round
news
up

WSG PNS enters
the valve repair
market

WSG PNS has constructed
a state of the art new 35,000
square feet facility at its UK head
office in Normanton, Wakefield
to accommodate valve repairs
and refurbishments as part of the
nitrogen and joint integrity services
company’s expansion into this
market.
The facility houses a 15 tonne
overhead crane, hydrostatic test cell,
fully submerged gas testing facility,
CNC ball grinding machines, and
Haas CNC milling and turning with
the capacity to repair/refurbish and
manufacture valves, including up to
a 46” diameter ball.

Social
media
round up
We want to use every opportunity to connect with
our members, so please follow us on Twitter
(@TheEICEnergy) and connect with us on LinkedIn
– Energy Industries Council (EIC).
Below you’ll find a selection of some of the exciting
EIC activities and useful industry information we’ve
shared through our social media channels.

The EIC
@TheEICEnergy
We’re hosting the UK pavilion at
@Exhibition_WNE this week, come and visit
us and our exhibitors in hall 2b #nuclear

Energy Industries Council (EIC)
EIC Regional Analyst Pietro
Ferreira provides an overview of FPSOs,
including their history, design and uses in the
oil and gas industry: http://eic.energy/1RI3D4S
Managing Director Gareth Turner
explained how this fits in with one of
WSG PNS’ core strategies, ‘As we
were already removing, reinstalling
and testing valves as part of our
plant outages, offering valve
services was the next logical step for
us, giving our customers a fully
integrated solution.’

i

For more
information:
www.wellservices-group.com

15

16

August 2016

Forthcoming events
9 August Management Course

Understanding Project
Management
EIC London

16 August Industry Overview

Fundamentals of Oil & Gas
EIC London

16 August Industry Overview

Fundamentals of Oil & Gas
EIC Dubai

17 August Technical Workshop

Introduction to Compressors
Dresser-Rand, Frimley

17 August Business Presentation

Opportunities with
EnQuest Petroleum
EIC Kuala Lumpur

18 August Business Presentation

EICDataStream Overview
EIC Houston

23 August Business Presentation

EICDataStream Overview
Regus @ Samsung Hub, Singapore

25 August Management Course

Contract Disputes
EIC Kuala lumpur

25 August Sector Showcase

Working Alliances –
Collaboration in Action
Aberdeen venue tbc

Collaboration has been a consistent industry theme
since the publication of Sir Ian Wood’s UKCS Maximising
Economic Recovery Review. The second series of
our UKCS showcases will now focus on the changing
landscape of the oil and gas supply chain by outlining
how operators and the supply chain are beginning
to collaborate and what is needed for successful
collaboration and how far we have come on the path to
working collaboratively.
This breakfast briefing will bring together a panel
of operators, supply chain companies and relevant
professional bodies from across the UKCS and gas
sector to discuss the opportunities in this area.
The companies will outline their recent effective
collaborations in the UKCS, providing the key lessons
learnt and top tips for effective collaboration.
To register interest in this event please contact:
julia.harte@the-eic.com

29 August Overseas Exhibition

Offshore Northern Seas (ONS)
Stavanger

30 August Management Course

Accelerating Revenue Growth
EIC Houston

25 August HSE Training

The ATEX Directives
SGS Baseefa, Buxton

For more information and to book visit www.the-eic.com
Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

September 2016

Forthcoming events

6 September

Corporate Entertainment

Cheese and Wine
Networking Night

Vintage Wine Bar, Wafi, Dubai

7 September Management Course

Effective Appointment and
Management of Local Agents
EIC London

13 September Technical Workshop

Introduction to Electric Motors
ATB Group, Norwich

21 September HSE Training

The Machinery Directive and
CE Marking
Amtri Veritas, EIC London

22 September Sector Showcase

8 September Export Showcase

Opportunities in Egypt
Aberdeen venue tbc

Egypt’s extractive industries including oil, gas and
mining, are an important part of its economy
with a history dating back to the 20th century.
However under investment has caused production
declines and left Egypt a net energy importer.
Egypt’s hydrocarbon resources are significant and
under-developed, with gas requiring an estimated
investment of US$21.1bn and exploration and
petrochemicals jointly requiring investment of
US$34.4bn. Attracting investment in the sector is a
priority with a target of US$70bn to be invested by
2022.
Join the EIC and UKTI for the Egypt Showcase for an
overview of the region’s energy sectors, details of
where the main opportunities lie and the support
available to companies looking to do business across
Egypt. Contact: julia.harte@the-eic.com

10 September Industry Overview

Fundamentals of FPSOs
EIC Rio de Janeiro

Renewables

Humberside venue tbc
Although the oil price has recovered somewhat, the
fall has very much highlighted to the industry that in
numerous cases, diversification is key to ensuring
survival. Many are now including the renewable industry
as a key element of their portfolio, but for others it still
remains uncharted territory.
This event has been developed to showcase some of
the key sectors within renewables including offshore
wind, energy from waste and biomass. The panel of
speakers will be drawn from both the operator and
contractor communities. Along with the provision
of a case study which will offer some hints and tips
on how to succeed in the sector, there will also be
a session detailing a number of emerging export
markets for renewables, specificlly solar.
It will be of interest to companies that are already doing
business in the sector along with those looking at it as
a new opportunity. To register your interest contact:
jennifer.hole@the-eic.com

22 September Industry Overview

Fundamentals of Natural Gas
EIC Rio de Janeiro

Booking Now lauren.zoryk@the-eic.com
Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Follow @TheEICEnergy

Join the EIC LinkedIn Group

17

19

EIC training
Steam and condensate systems
– do you know the basics?

Steam is often the first choice of heating medium
for product manufacturers and the best medium for
sterilising, humidification and power applications. Despite
this, many plant engineers have not undertaken specific
steam system training and without an understanding of
these fundamentals, it’s unlikely their steam system is
running at its optimum.
Steam systems have changed considerably over the last
decade, with modern systems now much more energy
efficient, they are virtually sealed, more automated, easier
to maintain and require less maintenance. First-hand
experience of working with such systems is of course a
good foundation of knowledge, but the learning should
not stop there. It is equally important that plant engineers
also have a thorough, up-to-date understanding of the
purpose and safe operational requirements of steam and
condensate systems, as well as the factors affecting their
performance and plant output.
Therefore, when it comes to gaining an appreciation of
steam and condensate systems, a practical hands on
learning experience delivered by a steam specialist is
essential. The EIC has collaborated with Spirax Sarco to
provide delegates with an introduction to the safe operating
requirements of a steam and condensate system.

An Introduction to Steam and
Condensate Systems
Topics covered:
• The basic theory of steam fundamentals
• Best practice for steam distribution
• Identification of major components, function and purpose
• Recognition and trace of essential fluid flow paths
• Operating, selecting, installing and checking steam traps
• Operating, selecting, installing pressure reducing valves
• Condensate recovery
By the end of the course, delegates will:
• Understand the fundamentals of steam and its uses
• Understand why condensate is formed
• Understand condensate recovery and its benefits
• Appreciate the value of condensate
• Know the components of steam and condensate systems
• Understand the importance of correct pipe sizing
• Identify best practice in steam installation
The next course will run on Friday 23 September 2016,
delivered by Matthew Dunn and James Spicer, Technical
Sales Engineers at Spirax Sarco UK.
Sign up for the EICOnline newsletter

Visit www.the-eic.com/Forms/NewsletterSignup

Training with Spirax Sarco

Matthew Dunn originally joined Spirax Sarco South Africa
as an Area Sales Engineer in 1979. Having relocated to
the UK in 2005 he now works within the technical support
team and is a regular part time trainer.
James Spicer joined Spirax Sarco after completing his
HNC in Mechanical Engineering and currently works
as a Technical Sales Engineer. James is a regular part
time trainer sharing his technical knowledge to deliver
introduction and maintenance courses.

About Spirax Sarco

Spirax Sarco provides the products, services, expertise
and training resources required to make the best
investments in building and maintaining a steam or
industrial fluid plant, from supplying an individual steam
trap, to a complete new plant and everything in between.
They can help their customers meet their business
objectives, whether ensuring health and safety,
reducing energy costs, boosting productivity, minimising
maintenance, or delivering environmentally-friendly
performance.

You may also be interested in:
An Introduction to Control Valves
Tuesday 4 October 2016 Severn Glocon
This course, in Brighouse, examines the design,
construction, selection and application of control and
choke valves, severe service considerations and the
consequences of poor specification and selection.
A workshop tour will provide you with a practical
insight into manufacture, assembly, instrumentation
and testing.
Contact: training@the-eic.com
Follow @TheEICEnergy

Join the EIC LinkedIn Group

20

Middle East news
Regional update

It is a great pleasure to
announce the appointment of
Fabrice Abalain as our new
Regional Analyst. A native
French speaker, Fabrice has
hit the ground running and
Terry W
illis
is already proving to be a
valuable asset to the Dubai office. Should
you have any queries relating to EICDataStream or would
like to schedule some training sessions, then please do not
hesitate to contact him. His direct line is +9714 602 6003,
his mobile number is +97150 115 2698. You can email him:
fabrice.abalain@the-eic.com
This is the time of year when business activities are at
their quietest. Souring temperatures coupled with the end
of Ramadan and the Eid holidays, mean a lot of people
take the opportunity to visit more temperate climates
which naturally reduces the level of engagement that we
have with our local membership. However, we continue
with the delivery of our training programme and have a
couple of new topics to offer which once confirmed we
will announce in next month’s news. In the meantime,
we are pleased to offer our traditional and very popular
‘Home Alone’ themed cheese and wine evening that is
scheduled for Tuesday 6 September.
Looking ahead, we are pleased to welcome new
members CH2M HILL to the office on Tuesday 27
September. They will provide an update on their
current activities as well as how members can work
with them on current and future projects. In October
we will be attending the Iranian Petroleum Congress at
the beginning of the month and will follow this up with
an updated Iran Showcase which we want to deliver
in Dubai if possible so watch this space. November is
always taken up with ADIPEC and once again, we will be
looking for support with our reception which takes place
on Sunday 6 September.
Terry Willis, Director, Middle East, Africa & CIS
terry.willis@the-eic.com

A consortium led by Masdar and including Spanish
companies Gransolar Group and Fotowatio
Renewables Ventures has been selected to build the
800MW third phase of the Mohammed bin Rashid Al
Maktoum Solar Park. The project will be constructed
on an independent power producer model. The
scheme will be developed in three phases.
The 200MW Phase A will be commissioned by April
2018, the 300MW Phase B will be commissioned
by April 2019 and the 300MW Phase C will be
commissioned by April 2020. The Masdar-led
consortium bid a world record low tariff of electricity
for solar power of US$2.99 cents per kilowatt hour.

Qatar and Total create new
company to develop the
Al-Shaheen oil field

France’s Total announced on 27 June that it had
signed an agreement to create a new company with
Qatar Petroleum that will develop and operate the
Al-Shaheen field, one of the world’s largest oil fields,
located in Qatar. The new North Oil Company will be
70% owned by Qatar Petroleum with Total owning the
remaining 30%.
As part of the joint venture, the state-owned oil
and gas corporation licensed the rights for the
production, sale and export of the Al-Shaheen
offshore oil field’s crude for 25 years starting July
2017. The Al-Shaheen field is Qatar’s largest oil field
and produces around 40% of Qatar’s crude oil at
around 300,000 barrels per day. Total said it plans
to invest more than US$2bn in developing the field
between 2017 and 2022.

Forthcoming
events

Get in touch Share your news and views...

Email newsdesk@the-eic.com • Phone +44 (0)20 7091 8600

Please go to page 16
to see upcoming events
in your region

21

Asia Pacific news
Regional update

Currently, the top two
countries in terms of value
and number of projects in
the Asia Pacific region are
China and India. Despite
Azman
its reported lower growth
Nasir
rate in the overall economy
for 2016-17, China still leads the energy
sector compared to other countries in the region due
to its continuously increasing energy demand. China
is expanding out of its borders and is present in all the
world’s continents. China’s international collaborations,
funding of international projects and acquisition of foreign
international companies keep making the headlines.
China is also making remarkable progress in the
renewables sector, and has huge solar, wind, tidal and
waste-to-energy projects. Given the importance of this
market we are in the process of organising a delegation
to China in early 2017.
India is another bright star in the region and, according
to the IEA’s latest report, is projected to record higher
energy demand than even China by 2035. It is one of
very few countries in the world which continues to spend
on the upstream exploration and drilling of oilfield wells
despite the current low oil price. In fact, India is taking
advantage of the much lower rates for drilling rigs and
associated facilities by inviting all the relevant players to
submit bids to its US$5bn development plan for the KG
Basin. In June 2016, the country announced that it has
allocated a budget of US$27bn for its oil and gas industry
in its bid to increase domestic production. We encourage
our members to consider China and India as one of their
targets for business expansion for this year onwards.
We are here to assist with preliminary introductions to
the relevant industry contacts and can provide business
advice on starting up in these two countries.
Both China and India are keen to partner with
experienced UK players in certain fields, particularly in
the high value and high technology areas. UK companies
have valid concerns about intellectual property rights
issues, however, we believe that there are proven ways to
address this when doing business in these countries.
Azman Nasir, Head of Asia Pacific
azman.nasir@the-eic.com

Regional news

Australia’s 28 blocks
shortlisted

The Australian government has unveiled details
about the offshore exploration blocks that are
proposed for inclusion in the country’s delayed 2016
licensing round. The 28 blocks shortlisted are located
offshore Western Australia in the proven Carnarvon,
Browse and Bonaparte basins.

Pakistan US$2bn LNG
pipeline contract agreed

The Karachi to Lahore pipeline project, known as
the North-South pipeline, to transport imported LNG
has been approved. Under the agreement, Russia
has agreed to provide financing worth US$2bn for
the project. In return, Pakistan will award Russia’s RT
Global Resources the pipeline project.

South Korea and Russia
to co-operate on nuclear
reactor research

Russia’s Research Institute of Atomic Reactors
and the Korea Atomic Energy Research Institute
have signed a MoU on scientific and technical
co-operation. The agreement covers research and
development in nuclear fuel, non-fuel components
and structural materials for advanced reactors;
operation and maintenance of fast nuclear
reactors, and nuclear fuel cycle technologies.
South Korea plans to develop a prototype
Generation IV sodium-cooled fast research reactor.
The 150MW Korean research reactor is expected
to start operations in 2028.

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22

North and Central
America news
Regional update
On 30 June we welcomed
Mr Thomas P Orr, Director –
Business Development for
Consolidated Contractors
Company (CCC) to the North
and Central America office.

Regional news

Amand

a Du

hon
CCC is a leading diversified
company carrying out construction,
engineering, procurement, development and investment
activities internationally.

Wood Group Mustang and
Mexico’s Grupo Diavaz form
joint venture
Wood Group Mustang and Grupo Diavaz, a Mexican
oil and gas operator and services company, have
created a joint venture: Mustang Diavaz. It will
provide EPC services to onshore and offshore
facilities in Mexico’s oil and gas industry and provide
pipelines for its upstream and midstream markets. As
the country privatises its oil and gas industry, Wood
Group hopes to strengthen its investments in Mexico
by pairing with Grupo Diavaz, the country’s second
largest energy company.

Mexico to launch new oil
and gas auctions
The CCC Group presentation

Mr Orr’s presentation gave an insight into CCC Group’s
corporate structure, as well as detailing current and future
projects, and procurement opportunities. His presentation
also offered members key information about CCC
Group’s business ventures worldwide especially in the
energy space. We are grateful to Mr Orr for spending his
valuable and limited time with the EIC and our members.
We were delighted that Aggreko, Talos Energy and UK
Trade & Investment accepted our invitation to speak at
the Regional Showcase: Opportunities in Mexico event on
26 July. This event was really well received and provided
members and non-members with an update on current
and future supply chain and project opportunities with
Mexican operators and contractors, and guidance on
how to do business across the energy sectors in Mexico.
Visiting Houston and need a desk or meeting room?
Book your hot desk and/or conference facilities at the
EIC North and Central America office in Houston, by
contacting our Office and Events Associate Manager:

The first auction of Round Two was launched at the end
of July and comprised 15 shallow water blocks. This
will be followed by a second auction for 14 onshore
blocks located in the Burgos Basin in northern Mexico
and in the southeast of the country. Deepwater fields
are scheduled for the fourth auction of Round One
which will be held on 5 December. 24 firms, including
Pemex, have signed up for the deepwater auction.

GE and Technip to
co-operate on LNG digital
solutions

The two companies have signed a memorandum
of understanding to evaluate the application of
digital solutions for the engineering, construction,
commissioning, start-up and operation of LNG
facilities. The joint project will use GE’s Predix
cloud-based operating system. The two companies
aim to improve productivity and cost-efficiencies by
pairing GE’s equipment solutions with Technip’s EPC
experience in LNG projects.

natalia.bueno@the-eic.com

Forthcoming
Events

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to see upcoming events
in your region

23

South
America news
Regional update

In August, after much
anticipation and excitement,
the Olympic and Paralympic
Games finally come to Rio. The
city will be full of athletes and
tourists and it is estimated
Clariss
e Roch
that more than 2.3m people
a
will pass through our wonderful city
between 5 August and 18 September.

Located in the Parque Lage, the beautiful and historical
botanical garden near the Olympic Park, is well worth a
visit. For more information visit: www.britishhouserio.com

During the games, the British athletes will be housed
at British House – the official residence for Team GB
during the Games. British House will also showcase UK
innovation and expertise in areas such as business,
culture, education and tourism.

Regional news

San Alberto production
dwindling

Gas production at the San Alberto field in Bolivia
is decreasing and could stop in 2022, according
to research carried out by local newspaper Pagina
Siete. Once Bolivia’s most important gas field, San
Alberto was responsible for 31% of the country’s
gas production in 2006. Today, the field produces
approximately 6MMcm/d, which is equivalent to 13%
of the national gas output. Two other gas fields –
Sábalo and Margarita-Huacaya – provide the bulk
of Bolivia’s gas production, which today stands at
approximately 36MMcm/d. Dwindling production and
the lack of new gas reserves are a risk to Bolivia’s
gas export agreements with Argentina and Brazil,
which also import gas through LNG regasification
terminals.

Harvest Natural Resources
leaves Venezuela

The US-based oil and gas company has announced
its departure from Venezuela following an agreement
with CT Energy for the sale of its local assets in a
deal worth US$80 million. Harvest’s departure is yet
further evidence of Venezuela’s economic crisis,
which has worsened with the steep fall in oil prices.
Halliburton recently announced in May that it was
scaling back operations in the country.

Marintec South America 2015

If you are planning to come to Rio during this period, you
may want to consider extending your stay and taking the
opportunity to visit Marintec South America. This trade
show for the shipbuilding, maintenance and operations
sectors will take place between 19-21 September and
registration is free. Seventy-five leading companies
have already confirmed their attendance. Among them
are Wärtsila, Roxtec, Sotreq (Caterpillar), and ABB.
For more information about this event please visit:
www.marintecsa.com.br/en
If you need any assistance or advice in the region or for
more information about upcoming events, please contact:

Clarisse Rocha, Head of Americas
clarisse.rocha@the-eic.com

Uruguay and Argentina in gas
export deal

Uruguayan authorities have confirmed that excess gas
imported by the future GNL del Plata LNG regasification
terminal will be sold to Argentina. The terminal will have
a capacity of 10 MMcm/d and it is understood that only
3MMcm/d m will be absorbed by the Uruguayan market.
The two countries’ gas networks are connected by the
Cruz del Sur pipeline.